How Much Statutory Redundancy Pay Am I Entitled to in the UK?

Question from John smith, How Much Statutory Redundancy Pay Am I Entitled to in the UK?

Answer from AI:

If you have been working for a company in the UK for five years and your average salary is £50,000 per annum, you may be entitled to statutory redundancy pay. The amount you receive depends on several factors, including your age, length of service, and weekly pay. Below is a general explanation of how statutory redundancy pay is calculated in the UK.

Understanding Statutory Redundancy Pay

Statutory redundancy pay is a legal entitlement for employees who have been made redundant and have worked for their employer for at least two years. The calculation is based on:

• Your age
• Your length of service
• Your weekly pay (capped at a maximum amount)

Age and Length of Service

The amount of redundancy pay you receive is calculated as follows:

1. 0.5 week’s pay for each full year you were under 22
2. 1 week’s pay for each full year you were 22 or older but under 41
3. 1.5 week’s pay for each full year you were 41 or older

Weekly Pay Cap

As of the 2023/2024 tax year, the weekly pay is capped at £643. This means that even if your actual weekly pay is higher, the calculation will use £643 as the maximum weekly pay.

Example Calculation

Let’s break down your specific situation:

• Average annual salary: £50,000
• Weekly pay: £50,000 / 52 = £961.54 (capped at £643)
• Length of service: 5 years
• Assuming you are between 22 and 41 years old

Since you are between 22 and 41 years old, you will receive 1 week’s pay for each full year of service.

1. 5 years of service x 1 week’s pay per year = 5 weeks’ pay
2. 5 weeks x £643 (capped weekly pay) = £3,215

Therefore, you would be entitled to £3,215 in statutory redundancy pay.

When to Seek Legal Advice

While this provides a general guideline, individual circumstances can vary. You should consider seeking legal advice if:

• You believe you have been unfairly selected for redundancy
• Your employer is not following the correct redundancy procedures
• You have additional contractual entitlements

Consulting with a legal professional can provide personalized advice tailored to your specific situation.

Additional Resources

For more detailed information, you can refer to the following resources:

• Calculate Your Redundancy Pay – UK Government
• ACAS Redundancy Guide – Advisory, Conciliation and Arbitration Service

Remember, this information is a general guide and should not be considered legal advice. Always consult with a legal professional for advice specific to your situation.